Grapevine

By News 24
Jul 26, 2024

French markets swing as investors grapple with election result

A surprise left-wing surge in Sunday's election blocked Marine Le Pen's quest to bring the far right to power in the National Assembly but no single group secured a working majority.

That meant French assets traded choppily at the open as traders struggled to process relief at the absence of a far right victory, concern about a more powerful left, and uncertainty about who will eventually form a government.

Societe Generale and BNP Paribas which had opened down around 1%, were last a touch higher.

Bond markets too were uncertain how to price the outcome and the gap between Germany and France's 10 year bond yields widened to as much as 71.1 basis points but was last a touch narrower at 66.5 bps.